Quantitative Cognition Chapter

Why I Keep Struggling with Quantitative Trading
1. Trends 2. Operates 24 Hours a Day 3. Frees Up Hands 4. Say Goodbye to Emotions 5. I also participate in many competitions; my results are not too bad, but I’ve tried comparing with quantitative methods and simply can't beat them. The final conclusion is, watching the market every day, fantasizing, with no change in funds—then isn’t the market entry for making money? Earning passively would definitely be better. So no matter what you do every day, in the end, it’s about whether your funds grow after 1 month, 3 months, or a year. As long as they do, I haven’t spent any effort to achieve that.

Second: Most traders and streamers don’t open real accounts, which means they’re losing money and haven’t even gone full throttle. Strong skills don’t necessarily mean a positive curve. The ultimate reason still comes down to emotions, mentality, and self-control. And analysts who don’t trade are quite accurate in predicting the market; doing it yourself for a while is a common problem. The hardest part to solve is emotions, not skills. Actually, most streamers and traders are already highly skilled; technical 🟰 sniping is strong, mentality 🟰 is fast, position 🟰 is about distance—none can be missing. Don’t waste time switching sniper rifles; it’s not very meaningful. All sniper rifles, without considering wind speed and distance, will be off.

Third: As for the issue of margin calls, black swan events, and large single-sided trades—many people ask questions.
What I want to say is, before asking this question, ask yourself: how do you handle black swan events? How you handle quantitative trading is how you should handle it. Your stop-loss is also part of the quant system. But after a quant loss, you might still get caught in a trap, like eating a needle. That’s something you can’t complete. Why do you think you can lose with quant and still win? Does the direction of quant always oppose the market? What we can do is control risk more tightly—nothing more. Currently, my optimized quant system has backtesting, stop-loss, minimal base position, almost no margin call. Can it execute every trade so strictly? Can you? That’s the twisted thinking of most people. Big players look at monthly returns and risk control, not at how fast they can double their positions. I believe that my low-leverage quant system can also achieve 15-20% monthly returns. The important thing is that my funds are growing while you’re still fantasizing about a single trade.

That’s why I choose to focus deeply on quantitative trading. Those eager for quick results naturally treat quant as a tool for daily position flipping. But I only think it’s more strictly executed than I am. I know I can’t do it myself. If so, I let it replace me—simple as that. So I plan not to continue obsessing over technical skills but to focus on stable profits and risk control, monthly returns. I don’t promote it because they don’t understand the logic. They will naturally come to me when they need it—that’s a demand relationship!